English – The Conversation | When companies face hostile takeover threats, they turn to ESG — and the whole community benefits by Lingyi Zheng, Assistant Professor, Asper School of Business, University of Manitoba
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When a firm confronts a hostile takeover bid, it—and other companies in the same industry—significantly boost their environmental, social, and governance (ESG) investments, rising by about 3.6‑6.1 % on average, according to a new study of U.S. publicly traded firms. This ESG surge is strongest in firms with fewer anti‑takeover safeguards and in states with constituency statutes that broaden stakeholder considerations. ESG serves as a defensive tool because strong ESG records raise valuation premiums, create legal, regulatory, and reputational hurdles for acquirers with weaker ESG profiles, and demand costly post‑acquisition ESG upkeep. As a result, the threat of hostile takeovers not only prompts targeted firms to invest more in sustainability but also spurs industry‑wide improvements that enhance stakeholder value, community relations, and overall corporate responsibility.
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https://theconversation.com/when-companies-face-hostile-takeover-threats-they-turn-to-esg-and-the-whole-community-benefits-284714
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